Distributed Generation: The New Reality of Ukrainian Energy. Initial Outcomes, Challenges, and Next Steps

The widespread development of distributed generation is no longer a theoretical concept of the future—it is the new reality of the Ukrainian energy sector, a key element of our resilience and survival. In recent months, the Government has announced support programs, and businesses and communities are actively investing in their own energy independence.

But what does this process look like in practice? What real challenges do project initiators face? Are the grids ready for the connection of hundreds of new facilities? And what economic model makes distributed generation not just a tool for survival, but also a profitable business?

It is time to “synchronize watches.” Energy Club is gathering key stakeholders—representatives of businesses already implementing distributed generation projects, distribution system operators, equipment suppliers, and financial institutions—to assess the initial outcomes and openly discuss the most pressing issues.

This meeting is not about theory, but about real-world experience. We aim to identify the main barriers (technical, regulatory, financial) and jointly develop recommendations to overcome them.

Key Questions for Discussion:

1. Interim Results:

• Which distributed generation projects (gas turbines, cogeneration, solar, biogas) are being implemented most actively and why?
• How effective are the existing state support programs and simplified procedures? What is working, and what needs improvement?

2. Main Barriers Today:

• Technical: Are the DSO grids ready for mass connections? What are the most common problems with issuing and fulfilling technical specifications?
• Financial: Where can businesses and communities find funding? The shortage of affordable loans, the complexity of attracting international financing, and the issue of insuring military risks.
• Regulatory: What bureaucratic obstacles remain despite simplifications? Issues related to land, environmental permits, and equipment certification.

3. The Role of DSOs in the New Reality:

• How are distribution system operators adapting to their new role—from energy transiters to active managers of a complex network with numerous sources?
• What investments and technologies (Smart Grids) do DSOs need for the effective integration of distributed generation?

4. The Economic Model of Distributed Generation:

• What do the project economics look like today? Payback periods, tariffs, and the possibility of selling surplus electricity to the grid.
• How can distributed generation become not just “backup power,” but a full-fledged and profitable business participating in the ancillary services market?

5. Strategic Perspective:

• What should the ideal model of Ukraine’s energy system look like in the future? The optimal balance between centralized and distributed generation.
• How can the current, often chaotic, distributed generation projects be integrated into a long-term energy reconstruction strategy based on the “Build Back Better” principle?

Who will be interested in this meeting:

• CEOs and CTOs of industrial enterprises,
• community representatives,
• distribution system operators (DSOs),
• banks and investment funds,
• energy equipment suppliers,
• legal and consulting firms.

Moderator

Valerii Bezus

Vice President of Energy Club

Speakers

Ivan Dyriv

Dolyna City Mayor

Yurii Podoliak

CEO of IKNET

Yuriy Bondarenko

General Director of LLC "STC Enpaselektro", Chairman of the Board of the Scientific and Technical Association of Power Engineers and Electricians of Ukraine (STAPEE), Chairman of the Technical Committee of the CIGRE Ukraine National Committee, First Vice-President of the All-Ukrainian Public Organization "Association "Ukrhydroenergo", Honored Power Engineer of Ukraine

Vitalii Nykolaienko

CEO of Voltage Group

Mykola Markheva

Head of the Department of Automation and Optimization of Business Processes of JSC “Ukrainian Distribution Networks”

Oleksandr Dombrovskyi

Vice-President, Head of Energy Innovations and Energy efficiency of MHP; President of MHP Eco Energy; Chairman of the Board of the Public union Global 100 RE UKRAINE